SB-0711, As Passed Senate, January 29, 2014
December 4, 2013, Introduced by Senators MARLEAU, BRANDENBURG, JANSEN, ROBERTSON, PAPPAGEORGE, WARREN, ANANICH and BIEDA and referred to the Committee on Finance.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 4d (MCL 205.54d), as amended by 2008 PA 556.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4d. The following are exempt from the tax under this act:
(a) The sale of tangible personal property to a person who is
a lessor licensed under the use tax act, 1937 PA 94, MCL 205.91 to
205.111, and whose rental receipts are taxed or specifically exempt
under the use tax act, 1937 PA 94, MCL 205.91 to 205.111.
(b) The sale of a vehicle acquired for lending or leasing to a
public or parochial school for use in a course in driver education.
(c) The sale of a vehicle purchased by a public or parochial
school if that vehicle is certified for driver education and is not
reassigned for personal use by the school's administrative
personnel.
(d) The sale of water through water mains, the sale of water
delivered in bulk tanks in quantities of not less than 500 gallons,
or the sale of bottled water.
(e) The sale of tangible personal property to a person for
demonstration purposes. For a dealer selling a new car or truck,
the exemption for demonstration purposes shall be determined by the
number of new cars and trucks sold during the current calendar year
or the immediately preceding year without regard to specific make
or style in accordance with the following schedule of 0 to 25, 2
units; 26 to 100, 7 units; 101 to 500, 20 units; 501 or more, 25
units; but not to exceed 25 cars and trucks in a calendar year for
demonstration purposes.
(f) Specific charges for technical support or for adapting or
modifying prewritten computer software programs to a purchaser's
needs or equipment if those charges are separately stated and
identified.
(g) The sale of computer software originally designed for the
exclusive use and special needs of the purchaser.
(h) The sale of a commercial advertising element if the
commercial advertising element is used to create or develop a
print, radio, television, or other advertisement, the commercial
advertising element is discarded or returned to the provider after
the advertising message is completed, and the commercial
advertising element is custom developed by the provider for the
purchaser. As used in this subdivision, "commercial advertising
element" means a negative or positive photographic image, an
audiotape or videotape master, a layout, a manuscript, writing of
copy, a design, artwork, an illustration, retouching, and
mechanical or keyline instructions. This exemption does not include
black and white or full color process separation elements, an
audiotape reproduction, or a videotape reproduction.
(i) A sale made outside of the ordinary course of the seller's
business.
(j) An isolated transaction by a person not licensed or
required to be licensed under this act, in which tangible personal
property is offered for sale, sold, or transferred and delivered by
the owner.
(k) The sale of oxygen for human use dispensed pursuant to a
prescription.
(l) The sale of insulin for human use.
(m)
Before January 1, 2014, 2016,
the sale of tangible
personal property for use in construction or renovation of a
qualified convention facility under the regional convention
facility authority act, 2008 PA 554, MCL 141.1351 to 141.1379. As
used in this subdivision, "qualified convention facility" means
that term as defined in section 5 of the regional convention
facility authority act, 2008 PA 554, MCL 141.1355.